Welcome to KII’s new website. The biggest difference in the site is the blogging section. It’s my intention to blog regularly, especially if I know that many of you are reading them. Eventually I plan to expand into Twitter and will add a Twitter link.
It’s been a roller coaster month with stocks dropping over 5% at one point. Our strategies helped us greatly as I estimated approximately 1.5% at most loss in our various accounts. Interestingly the markets have roared back, reaching approximately break even. This is curious. The correction was no surprise. 10% or more would be very normal and it has been well over 2 years since that has happened. And it’s been six years since a really bad drop. I readily admit that I don’t know if things are back to grinding upward or if the down market resumes. Either way I feel that we are ready.
We sold off one of our holdings that caused us some pain in September and replaced it with another holding I like a lot. You may have seen it in your account: PHDG. It mimics the S&P 500 but with a “hedge” that makes money when the markets fall. This is a purely mechanical exchange traded fund. No one makes decisions – the fund follows formulas. It makes less when the markets rise aggressively (like last year) but then makes money in 2008 and 2011. I like it and can provide more information to anyone interested. It is based on S&P research and they have provided me historical information.
Will be in touch with another blog soon. Regards to all of you,